CHAPTER 1:
1. What is e-commerce?
E-commerce means buying and selling goods or services over the internet instead of through
physical stores. For example, when you shop on Amazon, you can buy products like books,
electronics, or clothes, and even use digital services like video streaming. Another example is
online payments, where you use services like PayPal or credit cards to pay for items without
needing to meet face-to-face.
2. What are the current technology trends?
One of the current technology trends is Artificial Intelligence (AI). AI helps companies analyze
data and make smarter decisions. For example, Netflix uses AI to understand your movie
preferences and recommend shows you might like. Another trend is the Internet of Things
(IoT), which connects devices to the internet so they can collect and share data. For example,
smart home devices like Google Nest allow you to control the temperature and monitor energy
use in your home from anywhere.
3. Michael Porter and the competition strategies:
Michael Porter, a well-known business researcher, developed three main competition strategies
that companies can use to survive and grow in the market:
Differentiation strategy: This is when a company creates unique products or services
that are different from its competitors. For example, Apple uses this strategy with its
products like the iPhone and Macbook, which have special designs and features that
make them stand out.
Cost leadership strategy: This strategy focuses on being the lowest cost producer in the
market. For example, Walmart uses this strategy to sell goods at lower prices compared
to competitors by improving their supply chain and production processes.
Focus strategy: This strategy is when a company focuses on serving a specific market or
customer group. For example, Rolex focuses on high-end customers who want luxury
watches, offering products that are high-quality, exclusive, and expensive.
CHAPTER 2:
1. What is supply chain management (SCM)? Why is SCM very important
today?
Supply Chain Management (SCM) refers to the process of managing the flow of goods,
services, information, and finances across the entire supply chain, from raw material suppliers to
end consumers. It involves coordination among suppliers, manufacturers, distributors, retailers,
and customers to optimize efficiency, reduce costs, and improve customer satisfaction.
SCM is very important today due to several reasons:
Globalization: Companies operate in international markets, requiring efficient supply
chains.
Customer Expectations: Consumers demand faster delivery and high-quality products.
Technology & Digital Transformation: Innovations like AI, IoT, and blockchain
improve visibility and efficiency in SCM.
Cost Reduction: Effective SCM minimizes waste, reduces transportation costs, and
optimizes inventory.
Risk Management: SCM helps businesses respond to disruptions such as pandemics,
natural disasters, or geopolitical issues.
2. What happens if you can't manage your SCM system?
If a company fails to manage its SCM system effectively, several problems may arise:
Increased Costs: Poor coordination leads to higher production, transportation, and
inventory costs.
Delays & Stock Issues: Businesses may experience stock shortages or excess inventory,
causing inefficiencies.
Lower Customer Satisfaction: Late deliveries and inconsistent product quality reduce
customer trust and loyalty.
Supply Chain Disruptions: A lack of visibility and poor risk management make
businesses vulnerable to sudden disruptions.
Competitive Disadvantage: Companies with inefficient SCM may struggle to compete
with businesses that optimize their supply chains.
3. What are Porter's 5 Forces Model?
Michael Porter’s Five Forces Model is a framework used to analyze the competitive
environment of an industry. The five forces include:
1. Threat of New Entrants: How easy it is for new competitors to enter the market. High
barriers to entry (e.g., capital requirements, brand loyalty) reduce this threat.
2. Bargaining Power of Suppliers: The ability of suppliers to influence prices. Fewer
suppliers mean they have more power over pricing and availability.
3. Bargaining Power of Buyers: The ability of customers to influence prices. When buyers
have many options, they can demand lower prices and better quality.
4. Threat of Substitutes: The presence of alternative products or services. A high number
of substitutes increases competition and reduces profitability.
5. Industry Rivalry: The level of competition among existing players. High competition
(e.g., price wars, innovation battles) can lower profitability.